Suppose You Invested $100 in the Ishares High Yield Fund

question 76

Multiple Choice

Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $2 today and then you sold it for $95. What was your dividend yield and capital gains yield on the investment?

• A) 2%, -5%
• B) 2%, 5%
• C) -2%, 5%
• D) 5%, 2%

Understand the use and interpretation of critical values in hypothesis testing.

Calculate the standard deviation and mean from sample data.

Understand the differences between one-tailed and two-tailed tests.

Compute the standard error of the sample proportion or mean.

---

Definitions:

Interest Payments

The payments made by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage of the principal.

Accounting-based Incentives

Incentives designed based on accounting figures and performance metrics to motivate employees or management toward specific behaviors.

Earnings Growth

An increase in a company's net income over a specified period, indicating financial health and profitability.

Shareholder Value

The value delivered to shareholders because of management's ability to grow earnings, dividends, and share price.